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LOWER SAVING POWER - The people in India have a desire to save and possess all those factors,which motivate the 'WILL POWER TO SAVE',but they have lower per capita income.Moreover,the marjin between production and consumption is very narrow and so the saving capacity is very little.It reasults in lower per capita income.
HABIT OF HOARDING - Most of the illitrate people have a very little capacity to save,are in the habit of hoarding their savings in their houses.But such are of no use as far as capital formation is concerned,as their can't be utilised in any productive channel.
INFLATION - Because of inflationary trend,the prices of commodities have gone very high and the middle class people are finding it very difficult to save any money.Rather,it is becoming increasingly impossible for them to make both ends meet.under such circumstances, the majority of middle class is not contributing in capital formation.
LACK OF ECONOMIC AND SOCIAL OVERHEADS - Basic overhead like road,bulding,communication,education,water,health etc. are generally lacked in underdeveloped counties like India which create an improper atmosphere for the capital formation and the slow process of capital formaton.
LACK OF SKILLED ENTERPRENEURE - Able and efficient enterpreneure are not available in our country.It is the only reason for the low rate of capital formation.Due to absence of risk-taking enterpreneurs,estabishment of industries and expansion is quiet limited and industrial diversification is not carried out and no balanced development of economy is possible.
INADEQUATE INVESTMENT - The banking and financial facilities are inadequate in India.After nationalisation,large number of branches of banks have been opened even in remote areas and villages,but still wide gap exists.Similarly,the means of transport and communication are not fully developed.These adequencies adversly affect the mobilisation and investment of savings.
TAXATION POLICY - High level of taxes on property in India affect the savings and capital formation is adversly affected.The industialists and buisnessmen believe that level of taxation should be reduced so that the people's capacity to save is improved,simultaniously improving their capacity invest.
INSECURITY - The condition of Law and Order in many parts of the country is not normal.There is no adequate security of life and property in some of the region and this has discouraged the opening of new industries in those areas.Besides above causes,frequent failures of joint-stock conpanies have made the people reluctant for investment.
SMALL SIZE OF MARKET - Due to small size of domestic market,investment is not encouragement in poor countries like India.It does not expand the work of economic development and morden machines cannot be used as extra quntity produced has no market access.
FEAR OF NATIONALISM - The private entrepreneurs and industrialists are doubtfull about the goverment policies of nationalisation.As,such they hesitate to set up industries,which reasults slow rate of capital formation.
What else can I help you with?
What type of front causes low ceilings and rain?
A warm front typically causes low ceilings and rain. As warm, moist air rises over cooler air, it cools and condenses, leading to cloud formation and precipitation. This process often results in widespread, steady rain and lower cloud ceilings, which can persist for an extended period.
Are tornadoes associated with high or low pressure?
Tornadoes are associated with low pressure systems. The difference in air pressure helps create the conditions necessary for tornado formation, as the varying pressure causes air to move quickly and can create the rotation needed for a tornado to develop.
Does hurricanes have weather or geologic causes?
Hurricanes are tropical cyclones formed over warm ocean waters. Their formation and intensification are primarily driven by atmospheric conditions, such as high humidity, warm sea surface temperatures, and low wind shear. While hurricanes can have indirect impacts on the physical environment, their initial formation and behavior are primarily driven by atmospheric conditions rather than geologic factors.
What type of air pressure causes a depression and an anticline?
A depression, or low-pressure area, is typically associated with converging air masses that rise, leading to cloud formation and precipitation. In contrast, an anticline, which is an upward fold in rock layers, often forms in regions of high pressure where air diverges and descends, compressing the earth's surface. Thus, low pressure contributes to depressions, while high pressure is linked to the formation of anticlines.
What air motion causes cloud formation and causes the winds to converge into cyclones?
Convergence of winds at the surface and aloft is a major factor in cloud formation and cyclone development. When warm, moist air rises and cools, it condenses into clouds and releases latent heat, further intensifying the upward motion. This process, known as convergence and uplift, helps fuel the development of cyclones by creating a low-pressure system at the surface that draws in more air and moisture.
What are the causes of low capital formation in India?
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What are the causes of low capital formation in Pakistan?
increase in real assets of a country is capital formation
Causes of low capital formation?
I thin that we can control of low capital formation in the under developing countries. control the poverty, decrease birth rate, saving into bank, decrease international demonstration effect, improve infra structure increase entrepreneurial abilities, decrease unproductive expenditures, decrease unequal income distribution, decrease inflation, problem of money marker and decrease market imperfections.
What is low capital formation?
Low capital formation is the prevalence of having savings lower than your debts. This often occurs during recessions in the economy.
Why is there low capital formation in third world countries?
capital fromation, or investment, is funded by savings. Low incomes and high consumtption rates result in low savings rates hence a scarcity of funds for capital formation
What is low's capital?
Low capital formation is the prevalence of having savings lower than your debts. This often occurs during recessions in the economy.
State three main features of Indian economy at the time of independence?
low level of productivity under utilisation of available resources low level of capital formation poor infrastructure pressure of population predominance of agriculture low per capita income
What causes low hanging clouds to form near the Earth's surface?
Low hanging clouds near the Earth's surface are typically caused by warm, moist air rising and cooling, leading to condensation and cloud formation.
What are the Factors that affects the growth of commerce in west Africa?
Insufficient capital Political instability Low saving Low per capital
What is some slums of India?
Slums are in large number in India. They are for low class in India.
What are the problems of low capital in a business?
One of the problems of the low capital in a business it hinders a given company from obtaining something that will enable it to grow. The low capital in a given business also makes it very difficult for a given business to attract investors.
How the unequal heating of earths surface leads to the formation of wind?
Unequal heating of Earth's surface causes differences in temperature, creating areas of high and low pressure. Warm air rises at the equator, creating low pressure, while cold air sinks at the poles, creating high pressure. Wind then flows from areas of high pressure to areas of low pressure to equalize the pressure difference, resulting in the formation of wind patterns.
